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Worldwide Enterprise Videoconferencing and Telepresence Equipment Market Showed Mixed Results in First Quarter of 2016, According to IDC

Worldwide Enterprise Videoconferencing and Telepresence Equipment Market Revenue Decreased 21.1% Quarter Over Quarter, Increased 2.3% Year Over Year in First Quarter of 2016

FRAMINGHAM, Mass.--(BUSINESS WIRE)--The International Data Corporation (IDC) Worldwide Enterprise Videoconferencing and Telepresence Equipment QView showed mixed results in the first quarter of 2016 (1Q16), with overall videoconferencing equipment revenue decreasing 21.1% quarter over quarter, but increasing 2.3% year over year. Total worldwide enterprise video equipment revenue in 1Q16 was over $495 million, down from about $628 million in 4Q15. The total number of videoconferencing units sold in 1Q16 (101,391) decreased 8.0% quarter over quarter, but increased 9.9% compared to 1Q15.

From a market segment perspective:

Multi-codec telepresence equipment revenue ($23.9 million) was down 44.4% quarter over quarter, but increased 27.4% year over year in 1Q16. Unit shipments were down 47.1% quarter over quarter, but increased 48.8% year over year.

Room-based videoconferencing system revenue ($359.6 million) decreased 15.4% quarter over quarter, but increased 9.8% year over year. Unit shipments decreased 8.8% quarter over quarter, but increased 10.4% year over year.

"Some mixed news for the worldwide enterprise videoconferencing equipment market in 1Q16 as it saw mostly negative quarter-over-quarter results but also some positive year-over-year numbers, including overall revenue and unit shipments growing 2.3% and 9.9% year over year respectively," said Rich Costello, senior analyst, Enterprise Communications Infrastructure, at IDC. "The quarterly declines are mainly due to the usual seasonality, with the first quarter pretty much always the weakest of the year, and the fourth quarter usually the strongest. So the market is not doing as bad as the quarterly numbers might indicate."

Key Vendor Updates:

Cisco's 1Q16 results showed a 20.9% revenue decrease quarter over quarter, but a 9.0% year-over-year revenue increase. Cisco remained the leader in enterprise videoconferencing equipment with a 45.4% share of the worldwide market.

Polycom's revenue decreased both quarter over quarter (down 14.6%) and year over year (declining 16.2%) in 1Q16. Polycom ranked second in enterprise videoconferencing equipment with a 20.8% share of the worldwide market. Huawei's quarter-over-quarter revenue decreased 46.8%, but increased 3.7% year over year in 1Q16.

Huawei ranked third with an 11.2% share of the worldwide enterprise videoconferencing market.

"IDC survey data on adoption indicates that video is still a key component of collaboration and continues to place high on the list of priorities for many organizations," said Petr Jirovsky, Research Manager, Worldwide Networking Trackers. "The 2016 IDC Enterprise Communications Survey data showed more than 85% of respondents either use videoconferencing presently or plan to use it within the next two years. This is a slight percentage increase over our last survey in 2014."

About IDC International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.

All product and company names may be trademarks or registered trademarks of their respective holders.

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Worldwide Enterprise Videoconferencing and Telepresence Equipment Market Showed Mixed Results in First Quarter of 2016, According to IDC

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Worldwide Enterprise Videoconferencing and Telepresence Equipment Market Revenue Decreased 21.1% Quarter Over Quarter, Increased 2.3% Year Over Year in First Quarter of 2016

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FRAMINGHAM, Mass.--(BUSINESS WIRE)--The International Data Corporation (IDC) Worldwide Enterprise Videoconferencing and Telepresence Equipment QView showed mixed results in the first quarter of 2016 (1Q16), with overall videoconferencing equipment revenue decreasing 21.1% quarter over quarter, but increasing 2.3% year over year. Total worldwide enterprise video equipment revenue in 1Q16 was over \$495 million, down from about \$628 million in 4Q15. The total number of videoconferencing units sold in 1Q16 (101,391) decreased 8.0% quarter over quarter, but increased 9.9% compared to 1Q15.

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From a market segment perspective:

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Multi-codec telepresence equipment revenue (\$23.9 million) was down 44.4% quarter over quarter, but increased 27.4% year over year in 1Q16. Unit shipments were down 47.1% quarter over quarter, but increased 48.8% year over year.

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Room-based videoconferencing system revenue (\$359.6 million) decreased 15.4% quarter over quarter, but increased 9.8% year over year. Unit shipments decreased 8.8% quarter over quarter, but increased 10.4% year over year.

\"Some mixed news for the worldwide enterprise videoconferencing equipment market in 1Q16 as it saw mostly negative quarter-over-quarter results but also some positive year-over-year numbers, including overall revenue and unit shipments growing 2.3% and 9.9% year over year respectively,\" said Rich Costello, senior analyst, Enterprise Communications Infrastructure, at IDC. \"The quarterly declines are mainly due to the usual seasonality, with the first quarter pretty much always the weakest of the year, and the fourth quarter usually the strongest. So the market is not doing as bad as the quarterly numbers might indicate.\"

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Key Vendor Updates:

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Cisco's 1Q16 results showed a 20.9% revenue decrease quarter over quarter, but a 9.0% year-over-year revenue increase. Cisco remained the leader in enterprise videoconferencing equipment with a 45.4% share of the worldwide market.

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Polycom's revenue decreased both quarter over quarter (down 14.6%) and year over year (declining 16.2%) in 1Q16. Polycom ranked second in enterprise videoconferencing equipment with a 20.8% share of the worldwide market. Huawei's quarter-over-quarter revenue decreased 46.8%, but increased 3.7% year over year in 1Q16.

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Huawei ranked third with an 11.2% share of the worldwide enterprise videoconferencing market.

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\"IDC survey data on adoption indicates that video is still a key component of collaboration and continues to place high on the list of priorities for many organizations,\" said Petr Jirovsky, Research Manager, Worldwide Networking Trackers. \"The 2016 IDC Enterprise Communications Survey data showed more than 85% of respondents either use videoconferencing presently or plan to use it within the next two years. This is a slight percentage increase over our last survey in 2014.\"

About IDC International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.

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All product and company names may be trademarks or registered trademarks of their respective holders.